How do I improve my credit rating?

What steps should I take to improve my credit score?

How do I improve my credit rating?

It is possible to improve your credit rating or credit rating within a few months, depending on the state of your credit health. Even if you have a poor credit score, it is possible to turn it around either on your own or, if you do not have the time, with professional help and guidance.

What is the meaning of a credit rating?

Your credit rating or credit score is a three digit number between 300-900 that is a snapshot of your credit health. This rating is issued by three credit bureaus that operate in India – CIBIL, Equifax and Experian. It is based on details of your credit behaviour over a period of years. The credit bureaus have details of every credit–related transaction you have entered into over a period of 7-10 years. The higher your credit rating (i.e., the better your credit history), the higher your chance of being approved for a loan. A credit score of 750 or above is generally considered as a good score. You can automatically qualify for a loan with many lenders with this score.

What steps should I take to improve my credit score?

First, you need to get an updated copy of your credit report to find out what your most recent credit score is. You can apply to any one of the 3 credit bureaus to obtain a recent copy of your credit report. Read your report to understand the meaning of your credit rating and to identify any credit issues that you need to work on. Some of these issues could include: 1. Administrative/reporting errors: If you identify any mistaken entries that are dragging down your score for no fault of yours, you need to report it to the credit bureau immediately and file a dispute. 2. Large number of missed or delayed payments: Making all your payments in time and in full will significantly help increase your score. 3. High credit utilization rate: If you use more than 30% of your total credit limit on your credit card, it signals that you are hungry for credit. This will cause your score to drop. If this is the case, you will need to work on reducing your credit utilization. 4. Large number of credit accounts: If you have numerous loans and credit cards accounts, it implies that you have insufficient credit and need to tap multiple sources to fulfill your financial obligations. If this is an issue for you, you will need to optimise the number of credit accounts you have so that your score is not negatively impacted.

CreditMantri can help you obtain a free copy of your credit report and do an expert analysis so you can work in a focused and effective matter to improve your score and become loan-eligible.

Add a Comment

Thanks for your comment. Your comments will be posted on admin approval.

Follow Us

As part of our efforts to make the end consumer services affordable and available at price points which are favourable to the customer, CreditMantri may receive fees / commissions from lenders.

CreditMantri ™ is a registered trademark of CreditMantri Finserve Private Limited. All Rights Reserved. Product name, logo, brands, and other trademarks featured or referred to within Credit Mantri are the property of their respective trademark holders.

CreditMantri was created to help you take charge of your credit health and help you make better borrowing decisions. We support customers with every kind of credit profile - those who are new to credit and have a minimal or nonexistent record; those who have a problematic history; and those who already enjoy a healthy profile. If you are looking for credit, we will make sure you find it, and ensure that it is the best possible match for you. How do we help you? We enable you to obtain your credit score instantly, online, real time. We get your Credit Score online and provide a free Credit Health Analysis of your CIBIL or Equifax report. Based on the analysis, we help you discover loans and credit cards best suited for your credit profile. We help you understand your Credit Profile, Credit Information Report (CIR) and know where you stand. We are a one-stop shop for all your credit needs. We make it easy for you to browse through and compare the various financial products on offer on the market; access our free and user-friendly online tools; and finally, enjoy a stress-free application process with quick approvals. We ensure that you have a better shot at getting an approval for a loan or credit card you apply since we match the lender’s criteria to your credit profile. We help you avoid loan rejection by carefully determining your eligibility and matching you with the right lender/product. We achieve this with a cutting edge combination of data science and technology that ensures that both lenders and borrowers have a transparent common platform to make their decisions. We treat your data with the utmost confidentiality and will never share or sell it to anyone. That is our CreditMantri guarantee. Our dedicated and best-in-class customer service will go the extra mile (or two) to support you on every step of your credit journey. Our 1 Million happy customers are our best testimonial.

CreditMantri is India’s No. 1 site for Credit Analysis and Free Credit Score Online. Let us help you take control of your credit goals and unlock the door to your financial freedom.